Suisun City RDA Delivers $1.3 million to State as Required

PAYMENT LAST INSTALLMENT OF $2.05 BILLION STATE RAID ON LOCAL COFFERS

SUISUN CITY, Calif. — The Suisun City Redevelopment Agency this week sent $1.278 million in local funds to the Solano County Auditor as the second installment in it’s share of the $2.05 billion State raid passed by the State Legislature in 2009.

Redevelopment agencies across California were required to forward $350 million on May 10 to cover the State’s obligations to trial courts. Last year, redevelopment agencies paid a total of $1.7 billion to cover State budget spending.

In 2010, the Suisun City Redevelopment Agency paid $5.7 million to the State.

The California Redevelopment Association has filed a lawsuit challenging the constitutionality of ABX4-26, the State budget trailer bill passed in July 2009 as that authorized the $2.05 billion raid of local redevelopment funds to use for State purposes. The lawsuit is under appeal at the Court of Appeals.

“Losing this money is challenging. The proposed elimination of redevelopment by the Governor, is even worse. These actions by the State cripple our ability to build and expand our City’s economy,” said City Manager Suzanne Bragdon. “By taking our local funds, the State is not only harming us, but is likewise hindering the overall economic recovery of the State. Redevelopment is the State’s economic development engine.”

Suisun City uses redevelopment funds generated by the success of our revitalization efforts to pay for programs and support the establishment of new businesses and jobs such as

• Hampton Inn & Suites on the Waterfront
• Harbor Square – a mixed use project of restaurants, entertainment venues and office space
• First-Time Homebuyer Program and Neighborhood Reinvestment Program
• Suisun City Library.

This payment comes at a time when Gov. Jerry Brown wants to abolish redevelopment agencies altogether. A broad coalition of local government, business and labor has successfully fought the proposal and, thus far, the Governor has failed to garner enough votes. The coalition warns that abolishing redevelopment agencies would result in the loss of more than 300,000 private-sector jobs and billions in economic activity annually statewide.

“Redevelopment is a vital tool to create local jobs, reduce crime, build affordable housing, clean up contaminated toxic sites, and otherwise transform rundown, blighted communities in need,” said John Shirey, executive director, California Redevelopment Association. “Redevelopment is one of the only tools local governments have to put people to work. Continued State raids of local funds are not only illegal, but they make no fiscal sense at a time when we should be emphasizing job-creation.”

For more information about the Governor’s proposal and the coalition fighting to stop this illegal and fiscally reckless proposal visit www.ProtectOurLocalEconomy.com.

Redevelopment Success Story

SUISUN CITY — Since January, City staff has told the story of Suisun City’s redevelopment success over and over from Sacramento to multiple local groups and all points in between.

As Gov. Jerry Brown tried to close the State’s gaping $26.6 billion budget shortfall, he proposed eliminating the nearly 400 local redevelopment agencies (also known as RDAs) across California, among a host of other moves.

While estimated to generate an unrealistic $1.7 billion next fiscal year for the State, the RDA proposal would create a budget hole of roughly 10% for Suisun City. It also would end the single most important tool the City has used to transform itself into high quality community in which to live, raise a family and visit.

While City leaders continue to work with State officials about alternate budget proposals (see “Gov. Brown vs. RDA”), it’s important to remember just how Suisun City became a redevelopment success story.

SUISUN CITY’S STORY

In 1987, the San Francisco Chronicle labeled Suisun City as the worst city in the Bay Area. At that point, the City was spending upwards of 70% of its entire police budget on the Crescent neighborhood, and the historic waterfront was charitably considered an industrial backwater with little to no public access.

Though the City Council had designated the waterfront as a redevelopment zone, the unflattering attention kicked the local effort into high gear. The historic waterfront would once again become an economic engine for Suisun City.

Using tools of redevelopment first created in the 1940s, Suisun City

• Invested $65 million in blight elimination and infrastructure, including the entire Marina and Promenade
• Replaced dilapidated housing units with modern homes
• Created 326 affordable housing units
• Preserved and refurbished the Train Station
• Constructed the Nelson Community Center
• Established the Lambrecht Sports Complex to replace Todd Park’s ball fields
• Constructed the Civic Center
  

The results are seen across Suisun City:

• The crime rate has dropped 60% since redevelopment started
• Money created by the increased property values was provided to the Fairfield-Suisun Unified School District to help refurbish or rebuild every school campus in Suisun City
• New business ventures that return sales taxes to the community have launched and been sustained by loyal customers
• The Suisun City Library was built thanks to a redevelopment loan that filled a financing gap
  

DEFENDING RDA

Redevelopment is the State’s best method of stimulating and expanding the economy and creating 300,000 construction jobs annually. For cities, like Suisun City, it’s the only way to expand the local economy, providing both goods and services to residents, and capturing sales and other taxes necessary to pay for core City services.

To protect this tool, Suisun City joined with local businesses, chambers of commerce, economic development commissions, residents, the League of California Cities and California Redevelopment Association to oppose Gov. Brown’s proposal to eliminate RDA. The Redevelopment Association and League went further to develop and support an alternative to keep Redevelopment intact while providing nearly $1 billion to schools, which indirectly assists the State budget.

The effort has paid off so far. Several reform proposals are moving forward to address public accountability and other concerns, but most importantly Gov. Brown’s proposal to eliminate redevelopment FAILED by one vote in the State Assembly.

We will continue to work with legislators on solutions that allow the State to meet its obligations, supports local economic development and helps other local agencies meet their goals.

To stay updated on our efforts, follow us on Twitter.

READ MORE

• From the City Manager - "It's the Economy Stupid!"
• Gov. Brown vs RDA

Published in Suisun City Discovery Newsletter - April 2011

Suisun City RDA Seeks Innovative Developer Interested in 30-acre Highway Site

SUISUN CITY — The Suisun City Redevelopment Agency is seeking an innovative, experienced and financially capable developer that can help the Agency reach Suisun City's redevelopment goals for a 30-acre parcel on California State Route 12. >>Map>>

The parcel, which is zoned Commercial Service with a General Plan designation of Planned Development, is considered a key bridge between the Suisun City's main residential districts and the redeveloped Waterfront District, which is fast becoming a regional dining and entertainment destination.

The Agency's primary goals for any development on this site are:

• Strengthen the economic vitality of the City as a whole
• Embrace the site's location relative to the train station and the Waterfront District
• Provide a transition between existing development from the east to the Waterfront District
• Provide pedestrian, bicycle and vehicular connectivity and linkage from the east to the Waterfront District
• Create land planning and architectural treatments that are visually appealing from Highway 12 and the rail line
• Create a comprehensive plan for the entire site

The site faces State Route 12 (Highway 12) and is immediately adjacent to Solano County's only rail station serving the Capitol Corridor commuter rail service that extends from Sacramento to San Jose. A new Class I recreation trail runs along the southern boundary of the property to provide a key alternative transportation route to the Waterfront District, which is a primary focus of the Agency's redevelopment effort for the past 20 years.

Find general information on the Economic Development Department page or go to www.SuisunCityBusiness.com.

>>Follow this link for full details on the opportunity and related studies and documents>>

Suisun City Redevelopment Agency Forced to Pay $5.7 Million to State in Raid of Local Funds

PAYMENT WILL DAMAGE AGENCY'S ABILITY TO EXPAND LOCAL ECONOMY

SUISUN CITY — The Suisun City Redevelopment Agency today was forced to turn over $5.7 million to the Solano County Auditor, a required payment resulting from the State’s decision to raid $2.05 billion in local redevelopment funds as part of the 2009-10 State Budget. Instead of going to fund local job creation, economic growth and urban revitalization projects, this money will now be siphoned off to help pay the State’s obligations.

The payment was made in accordance with a ruling by Sacramento Superior Court Judge Lloyd Connelly last week that instructed local redevelopment agencies to abide by the provisions of ABX4-26 passed last year as part of the State budget. The bill allows the State to take $2.05 billion in redevelopment funding to use for State obligations. The California Redevelopment Association (CRA) is appealing the Superior Court ruling to the Court of Appeal.

The Redevelopment Agency Board had directed Suisun City Economic Development staff to wait until the latest possible deadline to forward the money.

“Losing this money is going to devastate our ability to build and expand our City’s economy,” said City Manager Suzanne Bragdon. “By taking our local funds, the State is preventing us from investing in local projects that are vital to the residents and businesses of Suisun City.”

“Loss of these funds comes during one of the worst declines in local property values and related revenues that we’ve ever seen,” said City Manager Bragdon. “The worst part is Sacramento will be back next year for another $1.7 million from our Redevelopment Agency. Unless the courts reverse this protocol, we’re afraid that the State will eventually take all of our redevelopment resources, effectively bankrupting the most powerful tool we have to build our community.”

In the past 20 years, the Suisun City Redevelopment Agency has been the primary force in

• Rebuilding the Suisun City Marina
• Removing severely blighted and crime-ridden neighborhoods near the Waterfront
• Rebuilding the Waterfront District
• Providing key funding for the Suisun City Library
• Constructing the Nelson Community Center
• Constructing the Lambrecht Sports Complex
• Renovating the Harbor Theater
• Constructing the Delta Cove, Victorian Harbor and Harbor Park neighborhoods
• Renovated the Suisun City Train Station
• Funding the First-Time Homebuyer and Neighborhood Revitalization programs and
• Dozens of other projects

“Sending this money to the State means we won’t be able to do these types of projects any longer,” said Economic Development Director Jason Garben.

>>Read More on this Issue >>